Can I help my child buy their first home?

Stella & Juan's search

When Stella bought her first home, she was earning £15,000 as a junior chartered accountant, and was able to borrow 3 times her salary for a mortgage. She found a house worth just £35,000, and despite being fresh out of university with no deposit saved, she was able to borrow an additional £5,000 to get her started.

Five years later, her home had nearly tripled in value from £35,000 to £90,000.  

However, when Stella’s son Juan started looking to get on the ladder himself, he struggled to get the mortgage he needed, and he wasn't alone. The average house price had risen to 65 times higher than it was in the 1970s, with average wages only 36 times higher, leaving many first time buyers struggling to get on the ladder.

Today, house prices in England are on average 10.6 times average incomes, representing a huge affordability gap between what people can afford and how much houses cost.

For Stella, helping Juan get a place of his own was clearly a priority, but she had no idea where to start.

Finding Tembo

The obvious place for Stella to start investigating how to help Juan was talking to a mortgage broker - and that's exactly what she did. But she was met with the assessment that there was absolutely "no way" that she would be able to help Juan buy a home.

Luckily, during a late-night Google search of ways parents can help their children buy a house, Stella found Tembo. After filling in her's and Juan's details and setting up a free call with her dedicated Tembo mortgage advisor, she was able to properly understand the options available to herself and Juan.

Her advisor explained how Stella could use her income as a way to boost her son’s borrowing potential through an Income Boost. By being added to the mortgage as a guarantor, Stella’s income would be considered alongside Juan’s, giving him a larger total income. With a larger total income, Juan was able to borrow more for his mortgage. 

As a guarantor, Stella has no equity in the property. Instead, she only has to step in if Juan is unable to make any of the monthly repayments. 

Making home happen

Stella’s dedicated Tembo mortgage team (made up of her own mortgage advisor and case manager) were able to help Stella and Juan through the entire process. From talking her through the pros and cons of becoming Juan’s booster, to filling out Juan's mortgage application, right up until he finally got his keys to his home - they were there to answer any questions and keep her updated, every step of the way.

With a little help from Tembo (and Stella!), Juan was finally able to get on the property ladder and start his own homeownership journey, just like his mum had all those years ago...